Chemtura Corp (NYSE:CHMT) has seen a decrease in hedge fund sentiment in recent months.
At the moment, there are tons of methods market participants can use to monitor their holdings. A pair of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can trounce the broader indices by a very impressive amount (see just how much).
Equally as integral, bullish insider trading activity is a second way to parse down the financial markets. Just as you'd expect, there are many stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the impressive potential of this strategy if piggybackers know where to look (learn more here).
Keeping this in mind, it's important to take a gander at the key action regarding Chemtura Corp (NYSE:CHMT).
Heading into 2013, a total of 25 of the hedge funds we track were bullish in this stock, a change of -7% from one quarter earlier. With hedgies' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, York Capital Management, managed by James Dinan, holds the most valuable position in Chemtura Corp (NYSE:CHMT). York Capital Management has a $55 million position in the stock, comprising 1.4% of its 13F portfolio. On York Capital Management's heels is David Gallo of Valinor Management LLC, with a $46 million position; the fund has 2% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include D. E. Shaw's D E Shaw, Curtis Schenker and Craig Effron's Scoggin and Alexander Mitchell's Scopus Asset Management.
Because Chemtura Corp (NYSE:CHMT) has faced falling interest from the aggregate hedge fund industry, it's easy to see that there was a specific group of hedgies who sold off their entire stakes at the end of the year. Intriguingly, Joshua Friedman and Mitchell Julis's Canyon Capital Advisors sold off the biggest investment of all the hedgies we watch, totaling about $15 million in stock.. John London and Steve Weinstein's fund, SuttonBrook Capital, also sold off its stock, about $11 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds at the end of the year.
Insider buying is at its handiest when the company in question has seen transactions within the past 180 days. Over the last six-month time frame, Chemtura Corp (NYSE:CHMT) has experienced 2 unique insiders buying, and zero insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey's time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Chemtura Corp (NYSE:CHMT) is no exception.
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